Note 2 - Impairment Charges	3 Months Ended
Mar. 31, 2016
Notes to Financial Statements
Asset Impairment Charges [Text Block]	(2 ) IMPAIRMENT CHARGES Long-Lived Asset Impairment Our tangible long-lived assets consist primarily of vessels and construction-in-progress. We review l ong-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We assess potential impairment by comparing the carrying values of the long-lived assets to the undiscounted cash flows expected to be received from those assets. If impairment is indicated, we determine the amount of impairment expense by comparing the carrying value of the long-lived assets with their fair market value. We base our u ndiscounted cash flow estimates on, among other things, historical results adjusted to reflect the best estimate of future operating performance. We obtain estimates of fair value of our vessels from third party appraisal firms. Management’s assumptions are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported. Beginning in late 2014, oil prices declined significantly and continued at low levels in 2015 and through the first quarter of 2016. The lower price environment has impacted the operational plans for oil companies and consequently has affected the drilling and support service sector. We experienced a negative impact on day rates and utilization of our vessels declined substantially during 2015, which effects have continued into 2016. Although our policy generally requires annual review for impairment, we have performed reviews for impairment in every quarter since the fourth quarter of 2014. We recorded impairment of our long-lived assets, including an intangible asset, and goodwill in the third quarter of 2015. The goodwill and intangible asset values were reduced to zero. The day rates for our vessels fell further in the first quarter of 2016 and utilization in our Americas and Southeast Asia segments fell from near 50% at year-end 2015 to less than 25% at the end of the first quarter of 2016. In addition, the valuations of our vessels, provided by third party appraisal firms, have declined significantly since we recorded impairment in the third quarter of 2015. Based on the triggering events discussed above, we performed an evaluation for impairment for the quarter ended March 31, 2016 and determined that the carrying value of our long-lived assets in the U.S. Gulf of Mexico and in Southeast Asia was greater than the related undiscounted expected future cash flows. We compared the carrying values of the long-lived assets to the fair value provided by the third party appraisal firms and recorded $114.1 million of impairment charges consisting of $94.5 million in connection with our long-lived assets in the U.S. Gulf of Mexico, which is a part of our Americas segment and includes vessels under construction, and $19.6 million in connection with our Southeast Asia segment. We will continue to monitor the industry for triggering events that could indicate additional impairment in 2016. Vessel Component Impairment We have vessel components in our North Sea and Southeast Asia segments that we intend to sell. Based on third party valuations, we have recorded impairment expense related to these assets totaling $2.6 million, consisting of $2.0 million in the North Sea and $0.6 million in Southeast Asia, in the first quarter of 2016.

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IMPAIRMENT CHARGES

Long-Lived Asset

Impairment

Our tangible long-lived assets consist primarily of vessels and construction-in-progress. We review l

ong-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We assess potential impairment by comparing the carrying values of the long-lived assets to the undiscounted cash flows expected to be received from those assets. If impairment is indicated, we determine the amount of impairment expense by comparing the carrying value of the long-lived assets with their fair market value. We base our u

ndiscounted cash flow estimates on, among other things, historical results adjusted to reflect the best estimate of future operating performance. We obtain estimates of fair value of our vessels from third party appraisal firms. Management’s assumptions are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported.

Beginning in late 2014, oil prices declined significantly and continued at low levels in 2015 and through the first quarter of 2016. The lower price environment has impacted the operational plans for oil companies and consequently has affected the drilling and support service sector. We experienced a negative impact on day rates and utilization of our vessels declined substantially during 2015, which effects have continued into 2016. Although our policy generally requires annual review for impairment, we have performed reviews for impairment in every quarter since the fourth quarter of 2014. We recorded impairment of our long-lived assets, including an intangible asset, and goodwill in the third quarter of 2015. The goodwill and intangible asset values were reduced to zero.

The day rates for our vessels fell further in the first quarter of 2016 and utilization in our Americas and Southeast Asia segments fell from near 50% at year-end 2015 to less than 25% at the end of the first quarter of 2016. In addition, the valuations of our vessels, provided by third party appraisal firms, have declined significantly since we recorded impairment in the third quarter of 2015.

Based on the triggering events discussed above, we performed an evaluation for impairment for the quarter ended March 31, 2016 and determined that the carrying value of our long-lived assets in the U.S. Gulf of Mexico and in Southeast Asia was greater than the related undiscounted expected future cash flows. We compared the carrying values of the long-lived assets to the fair value provided by the third party appraisal firms and

recorded $114.1 million of impairment charges consisting of $94.5 million in connection with our long-lived assets in the U.S. Gulf of Mexico, which is a part of our Americas segment and includes vessels under construction, and $19.6 million in connection with our Southeast Asia segment.

We will continue to monitor the industry for triggering events that could indicate additional impairment in 2016.

Vessel Component

Impairment

We have vessel components in our North Sea and Southeast Asia segments that we intend to sell. Based on third party valuations, we have recorded impairment expense related to these assets totaling $2.6 million, consisting of $2.0 million in the North Sea and $0.6 million in Southeast Asia, in the first quarter of 2016.